Internal Control Legislation
Several Elements of the Foreign Corrupt Practices

question 41

Essay

Internal control legislation
Several elements of the Foreign Corrupt Practices Act and the Sarbanes-Oxley Act are listed below. Place an "X" in the appropriate column to indicate which Act is most closely associated with each element. If an item applies to both, place an "X" in both columns. $$\begin{array} { | l | l | l | } \hline & \begin{array} { c } \text { Foreign Corrupt } \\\text { Practices }\end{array} & \begin{array} { c } \text { Sarbanes- } \\\text { Oxley }\end{array} \\\hline \text { Became law in } 2002 & & \\\hline \begin{array} { l } \text { Board of directors must be notified of internal } \\\text { control weaknesses }\end{array} & & \\\hline \text { Bribery was a primary motivation } & & \\\hline \text { Corporate scandals were a primary motivation } & & \\\hline \text { Defines reasonable assurance } & & \\\hline \text { Mandates specific SEC disclosures } & & \\\hline \text { Passed in } 1977 & & \\\hline \begin{array} { l } \text { Requires companies to maintain an adequate internal } \\\text { control system }\end{array} & & \\\hline \text { Signatures cannot be delegated } & & \\\hline \text { Violations can result in fines and imprisonment } & & \\\hline\end{array}$$

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Definitions:

Chronic Disease

A long-lasting condition that can be controlled but not cured, often with persistent effects on a person's health and well-being.

Aminotransferase

An enzyme that catalyzes the transfer of amino groups from an amino acid to a keto acid, essential in amino acid metabolism.

Skeletal Muscle Damage

Injury or harm to muscle fibers of the body used for movement, often resulting from excessive physical activity or trauma.

Muscular Dystrophy

A group of genetic diseases that cause progressive weakness and loss of muscle mass.